Which of the following would not be included in inventory costs?
A)Freight costs incurred by the buyer in shipping inventory to its place of business
B)The cost of insurance taken out during the time that inventory is in transit
C)The cost of sales tax paid when purchasing the inventory
D)Shelving to hold the inventory

Question

Quizplus · Accepted Answer

Shelving is considered a fixed asset and not part of the inventory cost. The cost of freight, insurance, and sales tax are all considered part of the inventory cost.

Which of the Following Would Not Be Included in Inventory